Assume that in all of the following situations the company's taxation year is the calendar year and that recapture arose as a result of a disposition. In which disposition situation would the company NOT be permitted to defer the recognition of the recapture with a replacement property election?

Question $5$Select one:

A$.$

A warehouse was destroyed in a fire in December of $2021.$ The insurance proceeds received were used to build a new warehouse that was finished in June of $2023.$

B$.$

A backhoe was stolen in December, $2021.$ The insurance proceeds received were used to buy a new backhoe in June of $2023.$

C$.$

A backhoe was destroyed in a fire in December of $2021.$ The insurance proceeds received were used to buy a new backhoe in June of $2023.$

D$.$

A warehouse was sold in December of $2021.$ A new warehouse was purchased in June of $2023.$